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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (65206)	7/4/2006 1:24:14 PM
From: sciAticA errAticA	Read Replies (3) \| Respond to of 110194

re: Zero interest rates is a ludicrous policy under the circumstances ---------- ... when can Japan really raise rates, or cut liquidity? Karl says November.

To: russwinter who wrote (65206)	7/4/2006 2:39:21 PM
From: booyaka	Respond to of 110194

Re: "without delay" What he said roughly translates as "The BOJ is approaching an extremely difficult juncture where we will implement a policy response without delay but slowly and in small increments." This was a general statement in a speech he made, not tied to any benchmarks like investment. The press reported the "without delay" part but omitted the "slowly and in small increments" part. ZIRP may be ludicrous from your standpoint but you have to realize that the BOJ is afraid of tightening too fast. Another thing is that Japan's CPI is scheduled to be rebased (from base year 2000 to 2005) in August. Rebasing typically results in downward revision of the CPI inflation rate by 20-30 basis points.